Microsoft is fulfilling its promise to unbundle Teams from its Office 365 and Microsoft 365 productivity suites in the European Union. This decision comes after a three-year dispute that started when Slack filed an antitrust complaint against Microsoft, claiming that including Teams in these bundles was illegal and blocked users from uninstalling the program.
Earlier this year, Microsoft agreed to separate Teams from its productivity suites, but the process remained uncertain. In July, the European Commission launched an investigation to determine if bundling Teams into these suites violated EU competition rules.
Microsoft is now making an effort to cooperate with the European Commission and address concerns raised. Nanna-Louise Linde, Microsoft’s vice president of European Government Affairs, expressed the company’s commitment to supporting a healthy competitive environment. Microsoft appreciates the clarity that has emerged through discussions with the European Commission and believes that taking meaningful steps to address concerns is a constructive move.
Starting from October 1st, Microsoft 365 and Office 365 will each be available at a reduced price of €2 per month or €24 per year for customers in the European Economic Area (EEA) or Switzerland. Teams will also be offered as a standalone product for €5 per month or €60 per year. Existing customers who purchased a productivity suite can continue using the entire bundle or opt to remove Teams by switching plans. However, Microsoft ensures that frontline workers and small business owners in the region will still have the option to include Teams in their purchase.
In addition to the pricing changes, Microsoft plans to provide additional support resources for developers, including guidance on public APIs and addressing user questions regarding data transfer in Teams. The company also intends to develop a new method for using its programs in competing applications.
By taking these measures, Microsoft aims to comply with EU competition rules and improve the competitive landscape. The company acknowledges that these steps may not resolve all concerns raised by the European Commission or its competitors, but it believes that they represent a significant and immediate shift within the market.
Overall, Microsoft’s decision to unbundle Teams from its productivity suites in the European Union is a result of legal pressure and a commitment to fostering fair competition. By offering Teams as a standalone product and reducing the price of its productivity suites, Microsoft hopes to address concerns and promote a healthy competitive environment in the digital workplace.
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